Lagging zones and trade reforms.

Abstract

It is suggested that economically lagging zones have not necessarily benefited from trade policy measures oriented to increase international trade among countries. When trade openness takes place, through trade liberalization for example, the terms of trade (relative prices of exports in relation to those of imports), and savings in foreign exchange tend to change. In the case of Bolivia, Barja, Monterrey and Villarroel (2004) investigated that between 1999 and 2002, rural poverty (measured by poverty gap and intensity of poverty) increased due to a reduction in savings and the deterioration of terms of trade.